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Questions
1. In the United States, has the net real balance of trade been in surplus or deficit over the past 40 years?
2. What has been the trend in the trade balance, is the deficit increasing or decreasing? Analyze what happened to this indicator during the 2008 financial crisis. Why do you think the trade balance deficit decreased during the financial crisis? Has real GDP increased or decreased over time? Can you identify some of the economic cycles?
3. Based on 4 and 5, can you say that the current account deficit is detrimental to U.S. economic growth? Why?
This document contains various important questions and their appropriate answers in the subject field of Economics.
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